Risk Measures 
Cost of Funding 
Pricing Multiples 
1. Beta 
1. Cost of
Equity 
1. PE &PEG 
2. Standard deviation in stock price 
2.
Cost of Debt 
2. Price to Book & EV to Inv Capital 
3. Regression statistics (R squared, Jensen's alpha) 
3.
Cost of Capital 
3. EV/EBIT and
EV/EBITDA 
4. HighLow Price Risk Measure 

4. EV/Sales and
Price/Sales 
Profitability 
Financial Leverage 
Cash
Flow Addons 
1. Net
Profit Margin 
1.
D/E ratio & Debt/Capital 
1.
Cap Ex & Net Cap Ex (including acquisitions & R&D) 
2. Operating Margin 
2. Debt/EBITDA 
2. Noncash Working Capital as % of Revenue 
3. Gross Margins 
3. Interest Coverage Ratios 
3. Sales/Invested Capital 
4. EBITDA, EBIT and EBITDAR&D Margins 
4. Accounting lease debt vs my estimates 
4. COVID effects on market cap and earnings 
5. Tax rates (cash, effective) 
5. Debt breakdown (term, type) 

Returns 
Dividend Policy 
5. R&D and Goodwill statistics 
1.
Return on Equity 
1. Dividend Payout & Yield 
6. Financing flows from debt/equity 
2. Return on Invested Capital 
2. Dividends/FCFE & (Dividends +
Buybacks)/ FCFE 
Growth 
3. ROE – Cost of Equity 
Corporate Governance 
1. Historical growth in earnings & revenues 
4. ROIC – Cost of Capital 
1. CEO, Insider and Institutional Holdings 
2. Sustainable growth in earnings per share and operating income 


